the new, stronger clariant - pressreleasefinder...18 september 2018 clariant makes step change into...

The new, stronger Clariant

18 SEPTEMBER 2018

18 September 2018

Disclaimer

This presentation contains certain statements that are neither reported financial results nor other historical information.

This presentation also includes forward-looking statements.

Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ

materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors

that are beyond Clariant’s ability to control or estimate precisely, such as future market conditions, currency fluctuations,

the behavior of other market participants, the actions of governmental regulators and other risk factors such as: the

timing and strength of new product offerings; pricing strategies of competitors; the Company's ability to continue to

receive adequate products from its vendors on acceptable terms, or at all, and to continue to obtain sufficient financing

to meet its liquidity needs; and changes in the political, social and regulatory framework in which the Company operates

or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence,

on a global, regional or national basis.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the

date of this document. Clariant does not undertake any obligation to publicly release any revisions to these forward-

looking statements to reflect events or circumstances after the date of these materials.

2 The new, stronger Clariant

18 September 2018


4 The new, stronger Clariant

• Creation of Business Area High Performance Materials (HPM) through the combination of Clariant’s Additives & high value Masterbatches with

parts of SABIC’s Specialties business

• HPM will be a uniquely positioned provider of highly customized high performance materials and solutions

• Divestment of Pigments, standard Masterbatches and Medical Specialties by 2020E

• Attractive prospects in Care Chemicals, Catalysis and Natural Resources

• Portfolio upgrade allows Clariant to be focused around customer-specific, technologically advanced applications with high growth and value

generations

Step change

into higher

value

specialties

• Signing of a Memorandum of Understanding to form newly created Business Area High Performance Materials

• Clariant to hold the majority stake in the combination

• Equalization consideration will be made by Clariant to SABIC, valuation dependent

• Realization of cost synergies and enhanced operational efficiencies of CHF 100m until end 2022E

• Net debt (incl. pensions) / EBITDA pro-forma 2019E leverage* not to exceed 2.4 x based on the current portfolio

• Completion expected end 2019, effective as of 1 January 2020, subject to reciprocal due diligence and regulatory clearances

• Significantly EPS accretive in first year (2020E)

Creation of

High

Performance

Materials

• Sales to reach approx. CHF 9 bn in 2021E post creation of HPM and divestments

• Sales growth upgrade to 5 - 6 % p.a., driven by the Group’s enhanced growth profile

• EBITDA margin after exceptional items to rise to approx. 20 % by 2021E

• Operating cash flow increase to above CHF 1.2 bn in 2021E

Financial

Highlights

• Expansion of Board of Directors to 12 members, of which 4 to be nominated by SABIC

• Proposed Chairman of the Board: Hariolf Kottmann

• New CEO: Ernesto Occhiello

• CFO: Patrick Jany

Governance

* including SABIC’s Specialties business and Clariant’s current portfolio set-up (before divestments)

18 September 2018

Clariant makes step change into higher value specialties*

The new, stronger Clariant5

CATALYSIS

BA Catalysis comprises the BU

Catalysts and the Business Line

Biofuels & Derivatives. It develops,

manufactures, and sells a wide range

of catalyst products for the chemical

and fuel industries which contribute

significantly to value creation in our

customers’ operations, ensuring that

finite raw materials and energy are

used efficiently. In addition, Catalysis

is in the forefront of new market

developments such as the

commercialization and licensing of

bio-ethanol.

NATURAL

RESOURCES

BA Natural Resources, comprises the

BUs Oil & Mining Services and

Functional Minerals. It is characterized

by high growth and low cyclicality as

well as a strong megatrend

orientation. Main drivers are the rising

demand for high value-added

specialty chemicals used in the oil,

mining, food and packaging industries

and the increased consumption of oil,

gas and base metals, driven by the

fast-growing economies.

CARE

CHEMICALS

BA Care Chemicals comprises the

BU Industrial & Consumer Specialties

(ICS), Food additives as well as the

future Industrial Biotechnology

business. It demonstrates a clear

focus on highly attractive, high-

margin, and low-cyclicality segments.

The BA follows a lifestyle-driven

megatrend and strengthens Clariant’s

position as a supplier of green and

sustainable products.

HIGH PERFORMANCE

MATERIALS

Business Area (BA) High Performance

Materials comprises the businesses

Additives, high value Masterbatches

and high performance thermoplastics.

Major applications include smart

electronics, health care, aerospace,

automotive, robotics, additive

manufacturing, renewable energy, as

well as e-mobility. These applications

demand differentiated fulfillment of

customer specifications which require

exclusive technology and formulation

know-how.

Sales growth

expectation p.a. 5 - 7 %

EBITDA

margin ambition 2021E19 - 21 %

Sales growth


EBITDA


Sales growth


EBITDA


Sales growth

expectation p.a. GDP

Steered for absolute EBITDA and cash

flow generation

Sales growth


EBITDA


PLASTICS &

COATINGS

BA P&C comprises the Pigments

business (pigments, preparations and

dyes used primarily in coatings,

plastics, printing and consumer

goods), standard Masterbatches for

the plastics industry and converters

as well as Medical Specialties. The

BA is typically subject to GDP growth

and economic cycles due to its highly

diversified end applications. Main

drivers are the increasing use of

plastic applications, as well as the

steadily growing demand for more

sustainable coating solutions.

* reporting structure as of 01.01.2019

18 September 2018

New Clariant - financial outlook 2021E


GROUP FINANCIAL OBJECTIVES

SALESin CHF bn

EBITDA marginafter exceptional items

OPERATING

CASH FLOW in CHF m

ROICafter exceptional items

Above peer group

average>10 %

SYNERGIES CHF 100m p.a.

EPSSignificant accretion from

first year onwards

5 000

6 000

7 000

8 000

9 000

10 000

11 000

2017 2021E

6.4

~ 9.0

NET DEBT / EBITDA incl. pensions

Not to exceed 2.4x

(pro-forma 2019E*)

2017 2021E

12.7 %~ 20.0 %

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2017 2021E

428> 1 200

Note: combined business foreign exchange rate assumption of 1.0 USD = 1.0 CHF; 2021E at stable 2018 FX rates

TRANSACTION FINANCIALS


Combination HighlightsHIGH PERFORMANCE

MATERIALS

18 September 2018

Creation of a unique

performance materials

business

• Creation of a uniquely positioned provider of highly customized high performance materials and solutions

• The newly created Business Area to be named High Performance Materials (HPM)

• Complementary capabilities by combining Clariant’s Additives and high value Masterbatches (color, high

temperature resins and health care) with parts of SABIC’s Specialties business (thermoplastics)

• Combined unique customer-specific offering places HPM business in an advantageous position

• Offering addresses global growth trends within rapidly expanding end-applications

Expanded global footprint

offering additional growth

opportunities

• Accelerated growth from complementary market and customer exposure

• Further strengthening of Clariant’s competitive position and presence in China / Asia and North America

Innovation + technology +

sustainability

= profitable growth

• Creation of a unique, proprietary R&D and technology platform

• Expanding innovation capabilities establishing basis for increasing win-rates

• Leading innovative platform with a portfolio of unique proprietary technologies (e.g. polyetherimide (PEI) and

non-halogenated flame retardants) and a strong track-record of technological breakthroughs

• Above market sales growth of 6 – 9 % p.a. until 2021E

Significant synergy potential of

CHF 100m p.a.

• Synergies of CHF 100m p.a. by 2022E

• Areas of synergies include service costs, spend effectiveness, site efficiency and asset network optimization

• Implementation costs of CHF 80m over 3 years

Attractive profitability with sig.

progression potential

• HPM EBITDA margin expansion to 24 - 25 % in 2021E from 19.4 % in pro-forma 2017

• Combination to lead to significant EPS accretion from first year onwards

Combination benefits



18 September 2018

Transaction highlights

• Combination of Clariant's Additives and high value Masterbatches with parts of SABIC's Specialties business

to create the new Business Area High Performance Materials within Clariant

• Clariant to hold the majority stake of the combined businesses

• Agreement in principle to transfer the businesses at similar valuation multiples in view of the businesses

being of similar quality and profitability levels

• Equalization consideration to be made by Clariant to SABIC, depending on final relative valuation to be

determined by both parties

• Realization of cost synergies and enhanced operational efficiencies of CHF 100m until end 2022E

• Clariant resulting net debt (incl. pensions) / EBITDA pro-forma 2019E leverage* not to exceed 2.4x at closing



18 September 2018

High Performance Materials – customer-specific solutionscreating the basis for accelerated profitable growth

• Customer-specific and application know-how driven offering for:

thermoplastics for demanding thermo-electro-optical and mechanical

environments, specialty additives and masterbatches in tandem with an

outstanding global compounding platform

• Major applications: smart electronics, health care, aerospace, automotive,

robotics, additive manufacturing, renewable energy as well as e-mobility

• Exclusive technology and formulation know-how allow for fulfillment of

stringent customer specifications

• Enhanced market and customer reach, cost synergies and enhanced

operating efficiencies to fuel substantial profitability progression and unlock

greater value creation

• By 2021E, sales expected to grow to approx. CHF 4 bn

from pro-forma 2017 sales of CHF 3 bn

• EBITDA margin (2021E), incl. synergies, at 24 - 25 %

from 19.4 % in pro-forma 2017


FINANCIAL PERFORMANCE (EBITDA margin after exceptional items)

OUTLOOK

Sales growth 2017 – 2021E 6 – 9 %*

EBITDA margin a.e.i. 2021E 24 - 25 %

3 050

10.0 %

12.0 %

14.0 %

16.0 %

18.0 %

20.0 %

22.0 %

24.0 %

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

2017 pro forma 2021E

Sales in CHF m EBITDA a.e.i. margin

~ 4 000

19.4 %

24 – 25 %

* per annum


18 September 2018

SABIC’s Specialties business


Highly differentiated

products with proprietary

technology

• ULTEM™, NORYL™ and Copolymer resins and LNP™ functional compounds are highly

differentiated products that offer a distinct set of physical properties

• Differentiation allows for sustainable value-based pricing

Strong positions

in attractive end-

applications

• The Specialties offerings serve highly attractive niche end-applications, e.g. battery pack

materials for electric vehicles, surgical instruments in health care, and cabin interior in

aerospace

• Attractive, high growth end-applications such as consumer electronics and e-mobility

Unique selling

proposition

• SABIC’s Specialties business is the supplier of ULTEM™ and NORYL™ resins, and one of

the major technical compounders, able to produce differentiated specialty grades

• The high differentiation of the physical properties of these materials is a unique

selling proposition

• Specialties offerings have the ability to drive application development in specific high

value applications

Attractive pipeline

• New businesses include additive manufacturing, advanced thermoplastic composites and

resin conversion

• Incubation businesses have successfully demonstrated customer and market pull, product or

prototype capability, and value chain development

Application Examples

Consumer

Electronics

(EMI Shielding)

Aerospace

(Cabin Interior)

Healthcare

(Patient Testing,

Surgical Instruments)

Consumer

and Industrial

(Fluid

Engineering)

Automotive

(Sensors and

Connectors, Battery

Pack Materials)

Information and images are courtesy of SABIC.

18 September 2018

High performance polymers and compounds


Note:

(1) PPE is a specialty engineering polymer and can be categorized in-between engineering and high-performance polymers according to industry

experts; PPE has a range of high value and high margin applications where it competes with high-performance polymers.

(2) TS&A: Thermosets & Additives business line

(3) PCB = Printed Circuit Boards

Source: IHS Chemicals, expert interviews, MarketsandMarkets

HIGH PERFORMANCE

POLYMERS (HPP)

ENGINEERING

POLYMERS

COMMODITY

POLYMERS

ULTEM ™ resin

NORYL™(1) resin, TS&A(2)

(PPE Oligomers for PCBs)(3)

LNP™ compounds

& copolymers

ULTEM™ resin is a high performance

thermoplastics resins (PEI), which provides high

thermal, high strength, flame resistant properties

NORYL™ resin is a specialty engineering polymer

(PPE), which combines the benefits of PPE with

excellent dimensional stability, good processability

and low specific gravity

LNP™ compounds and copolymers consist of

unique combinations of resin system, fillers, additives

and flame retardants

High thermal stability

Low thermal

stability

Medium thermal stability

Information and images are courtesy of SABIC.

18 September 2018

Synergies arising from business combination


Synergy distributionTentative, approximation in CHF m

− Stronger presence in joint applications by combining formulation technology, customer access, qualification process participation

− Broader offering including participation in OEM driven development process (e.g. via small lot compounding) including masterbatches as an

alternative coloration delivery system

− Leveraging of Clariant’s Masterbatches’ color houses for parts of SABIC’s Specialties business

2060

100 100

-40-20 -20

- 40

- 20

0

20

40

60

80

100

120

2020E 2021E 2022E 2023E

Synergies phased Implementation costs

Service Cost

Synergies

Procurement

Asset Network

Optimization

Other Sources of

Synergies

Synergies 2022E

Site Efficiency

Distribution

Optimization

− Unify services over shared IT system

− Leverage existing Clariant processes

− Combine and optimize purchasing

− Consolidation of assets

− Workflow harmonization

− Operational efficiency

− Adopt best-in-class sales approach


18 September 2018

Next steps of portfolio upgrade

Next steps for creation of High Performance Materials Business Area

• SABIC and Clariant to prepare carve-out of their respective businesses

• Strong commitment from both SABIC and Clariant to finalize terms of the combination by June 2019 following

completion of reciprocal due diligence

• Valuation to be negotiated and equalization consideration to be mutually determined in order to achieve

economic ownership levels

• Closing targeted for December 2019, subject to regulatory approvals and other customary closing conditions

Next steps for divestments

• Carve-out of remaining Plastic & Coatings businesses during 2019

• Divestment of Pigments, standard Masterbatches and Medical Specialties by 2020E


Group Strategy

18 September 2018

Strategic direction

• Our strategy is to leverage our operational efficiency to effectively seize the profitable growth

opportunities arising from global challenges

• Clariant is well positioned to deliver innovative, sustainable products and solutions which

address the increasing demand for more convenience, stricter safety requirements and tighter

environmental regulations as well as improved energy efficiency

• Our customer-specific product portfolio, technology and solution offerings will allow for an

above-average top-line growth, profitability progression as well as a resilient and improving

operating cash flow


Clariant, your dedicated and strong partner who provides innovative, specialized solutions

for profitable growth and a sustainable tomorrow.

18 September 2018

Group strategy with enhanced product and solution offering


Continuous

developments

Portfolio

upgrade

• Increased scale

• Upgraded higher

margin specialties

portfolio

• Additional R&D and

commercial

opportunities

• Digitally-enabled

differentiated operating

models according to

their degree of

specialization

• Product and solution

offering upgrade with

higher profitability

• Enhanced processes

to increase cost

efficiency

• Driven by new

products through

innovations and

customer

specifications

• Above industry

segments' growth

• Strengthen position

in core growth

markets (China,

North America)

• Commercialization of

sustainability (green,

renewable and

ecological products)

• Capture recycling

opportunities

• Mitigation of risk

• Continued product

differentiation and

customer

specification

• Capturing digital

business model

opportunities

• Thought leadership

in disruptive

technology fields

through R&D

INCREASE

PROFITABILITY

5

FOCUS ON

INNOVATION AND

R&D

1

ADD VALUE WITH

SUSTAINABILITY

2

INTENSIFY

GROWTH

4

REPOSITION

PORTFOLIO

3

• Advanced product

and solutions

replacing previous

offering

18 September 2018

Total pipeline of CHF 2.1 bn


Future peak sales in CHF

> CHF 100m

2017 2018 2019 2020 Launch date

Profitability

CUSTOMER-SPECIFIC

CATALYST

(Catalysis)

RENEWABLE AND BIODEGRADABLE

PRODUCTS CONSUMER CARE

(Care Chemicals)

ADDITIVES

(High Performance Materials)

LIGNOCELLULOSIC ETHANOL

(Catalysis)

INNOVATION FOR OIL

RECOVERY

(Natural Resources)

SEDIMENT MANAGEMENT

(Natural Resources)

PETROCHEMICALS

(Catalysis)

CONSUMER CARE

(Care Chemicals)

SYNGAS

(Catalysis)

CROP SOLUTIONS

(Care Chemicals)

CHF 50 - 100m

CHF 20 - 50m

< CHF 20mInnovation pipeline examples

18 September 2018

Care Chemicals – further accelerating into becoming a leading innovative and sustainable solution provider

STRATEGY OUTLOOK

• Continue to grow more quickly than the market by:

Increasing offering of sustainable products and solutions by supporting

the expanding demand for sustainable and “ecological” products

coupled with demand for convenience

Strengthening exposure in strategic regions: North America and China /

Asia

• Focus on growing Consumer Care business:

Personal Care (natural ingredients and active ingredients anticipating

the future beauty trends)

Home Care (sustainability and convenience)

Crop Solutions (precision application, delivery and crop yield increase)

• Improve profitability by moving towards more individualized, customer-

specific products with scalability mainly in Consumer Care


UPDATED OUTLOOK

Sales growth 2017 – 2021E 5 – 7 %*

EBITDA margin a.e.i. 2021E 19 - 21 %

1 575

10.0 %

12.0 %

14.0 %

16.0 %

18.0 %

20.0 %

22.0 %

24.0 %

1 000

1 200

1 400

1 600

1 800

2 000

2 200

2 400

2017 2021E


16.5 %

19 - 21 %


* per annum

18 September 2018

Care Chemicals

PRODUCT INNOVATIONS

− Genadvance: enables much improved hair conditioning performance via sustainable formulations

using natural ingredients. Genadvance currently provides 3 new conditioning ingredients (i.e. hair

shine, hair and scalp moisturization and hair repair)

− Smart surface cleaning offering: entry into new market segment of a hard surface cleaner which

combines several consumer benefits in one product thus meeting customer’s demand for

convenience: i.e. reducing cleaning time and effort while having additional performance properties of

shine and repair

− Glucamide: currently approx. 180 customers are reformulating their products to include Glucamide in

their formulations for personal care, home care, crop and industrial applications

INNOVATIVE CUSTOMER-SPECIFIC COOPERATIONS

− Synergen OS: optimizes spray droplet management of agricultural applications thereby reducing drift

and improving crop yield; in a joint development between Clariant and one of our clients


LINKS TO INNOVATIONS:

SYNERGEN® OS

CROP SOLUTIONS

GENADVANCETM LIFE

GENADVANCETM REPAIR

GENADVANCETM HYDRA

Advanced hair careGENADVANCETM

PERSONAL CARE

GENADVANCETM

https://www.clariant.com/en/Innovation/Innovation-Spotlight-Videos/Synergen-OS



https://www.clariant.com/en/Business-Units/Industrial-and-Consumer-Specialties/Personal-Care/Genadvance/Life



https://www.clariant.com/en/Business-Units/Industrial-and-Consumer-Specialties/Personal-Care/Genadvance/Repair



https://www.clariant.com/en/Business-Units/Industrial-and-Consumer-Specialties/Personal-Care/Genadvance/Hydra



https://www.clariant.com/en/Business-Units/Industrial-and-Consumer-Specialties/Personal-Care/Genadvance



18 September 2018

Catalysis – maintenance and capitalization of innovation leadership and strong licensing partnerships

STRATEGY OUTLOOK

Catalysts

− Continue to grow more quickly than the market’s ca. 3 % growth rate via:

• Leveraging our innovation leadership and thus accelerate the introduction of

innovative, customer-specific catalysts for defined areas with large scale

potential

• Adding more sustainable products using less hazardous materials thereby

enhancing sustainability and cost position of customers

• New customer entrants showing preference for proven technologies such as

those of Clariant

Biofuels & Derivatives

− Incremental sunliquid® sales of CHF 100m, of which license sales of CHF 50m

and CHF 50m bioethanol sales (entire production of Romanian plant already

contracted for several years) by 2021

− EBITDA margin exceeding 40 %



UPDATED OUTLOOK

Sales growth 2017 – 2021E 6 – 9 %*

EBITDA margin a.e.i. 2021E 26 – 30 %

767

21.0 %

23.0 %

25.0 %

27.0 %

29.0 %

31.0 %

500

600

700

800

900

1 000

1 100

1 200

2017 2021E


25.0 %

26 - 30 %

* per annum

18 September 2018

Catalysis

PRODUCT INNOVATIONS

Catalysts

− Customized catalysts offering significant longer-term activity and a better stability thus lowering total

costs of ownership

− Catalysts with specialized properties, including recyclability, reduction of hazardous components while

providing an improved catalyst specific performance (increase yield, reduce energy consumption and

reduce by-products)

− Air purification: meeting the demand for “clean, healthy” air in cities with high pollution levels with

catalysts such as ENVICAT®

− Hydrogenation: entering new regional markets

Biofuels & Derivatives: sunliquid® technology

− Flexible process for various renewable feedstocks

− Integrated production of feedstock-specific enzyme to deliver max. efficiency, independent of suppliers

− Energy neutral / self-sustained: no additional fossil energy required

− Nearly carbon neutral and high process yield based on agricultural wastes: No additional land needed,

no competition with food and feed in land requirement



SUNLIQUID®

BIOFUELS & DERIVATIVES

ENVICAT®

EMISSION CONTROL

https://www.clariant.com/en/Business-Units/New-Businesses/Biotech-and-Biobased-Chemicals/Sunliquid



https://www.clariant.com/en/Innovation/Innovation-Spotlight-Videos/EnviCat



18 September 2018

Natural Resources – optimizing operations at OMS and expanding into new applications at Functional Minerals

STRATEGY OUTLOOK

Oil & Mining Services

− Improved Oil / Oil services growth prospects:

• Oil market rebound to result in momentum turnaround

• Introduction of differentiated steering with focus on the growth oil basins in North and

South America

− Mining: diversify and grow mainly in Latin America and accelerate growth in North

America

− Main profitability improvement drivers include tight cost control and cost reduction

according to respective business landscapes and differentiated steering

Functional Minerals

− Continued above bentonite market growth

− Regional expansion in North America (market entry into purification segment), Latin

America and the Middle East

− Expansion in new applications through innovations by means of smart and active

packaging (e.g. feed and agro)

− Continued attractive margins due to new innovative technologies with superior growth

opportunities



UPDATED OUTLOOK

Sales growth 2017 – 2021E 6 – 7 %*

EBITDA margin a.e.i. 2021E 16 – 17 %

1 357

11.5 %

12.5 %

13.5 %

14.5 %

15.5 %

16.5 %

17.5 %

18.5 %

1 000

1 100

1 200

1 300

1 400

1 500

1 600

1 700

1 800

1 900

2 000

2017 2021E


14.3 %

16 - 17 %

* per annum

18 September 2018

Natural Resources

PRODUCT INNOVATIONS

Oil & Mining Services

− Intelligent chemical management in real-time, VERITRAX™, providing customers with additional valuable features

such as improved operational efficiencies, increasing the efficiency of business processes, and boosting production

up-time

− The VERITRAX™ dashboard quantifies the optimum chemical spend, helps to reduce unplanned downtime, while

proactively maintaining operational efficiency

− Broad rollout of proven and digitally-enabled VERITRAX™ with enhanced scalability to stimulate further

advancement

Functional Minerals

− Low Emissions Technology (Geko LE / Ecosil LE) for the foundry industry lowers total cost of ownership by reducing

the consumption of process aids and suppressing unwanted side-reactions

− INVOQUE® marks Clariant’s entry into sediment management for the mining sector. This unique process technology

reduces water consumption and improves the use of tailings reservoirs which results in lower overall operating

costs and mitigates the environment impact

− Our Tonsil® range allows producers of renewable- and bio-resource based diesel to remove heavy metals at very

low dosage rates thereby allowing faster filtration and low overall residency time, thus increasing production

throughput



VERITRAXTM

TONSIL®

OIL SERVICES

OIL PURIFICATION

SEDIMENT MANGEMENT

INVOQUE®

https://www.clariant.com/en/Company/DiscoverValue/Veritrax



https://www.clariant.com/en/Innovation/Innovation-Spotlight-Videos/Tonsil



https://www.clariant.com/en/Business-Units/Functional-Minerals/Sediment-Management



18 September 2018

“Remaining” Plastic & Coatings

STRATEGY OUTLOOK

Pigments

− Marketing driven sales growth via selective innovation projects, growth in preparations

and regional focus on opportunities in China, India and North America

− Profitability improvements anticipated via:

• Development of functional excellence in pricing and increased capacity utilization

• Supply chain optimization: improved reliability for customers, digitally enhanced

offering and ensuring a sustainable product range

Standard Masterbatches

− To grow sales in line with GDP by benefiting from strong market position, convincing

product portfolio and focus on more rapidly growing regions and profitability

improvements

Medical Specialties

− Continue sales increase through innovations which meet increasingly stringent

customer and regulatory requirements


UPDATED OUTLOOK

Sales growth 2017 – 2021E GDP*

Steered for absolute EBITDA and cash flow

generation


* per annum

2017 Sales (CHF m) 1 560

EBITDA a.e.i. (CHF m) 182

EBITDA a.e.i. margin 11.7 %

Governance, Listing & Shareholder Structure

18 September 2018

New Shareholder & Governance


• With a 24.99 % stake, SABIC is Clariant’s largest shareholder

• No intention to make a public tender offer or to otherwise effect a full takeover of Clariant

• Group of former shareholders of Süd-Chemie AG to remain second largest shareholder

• Clariant to continue as an independent listed company on the Swiss Stock Exchange SIX

Shareholder

Structure &

Listing

• Board of Directors: 12 Board members, of which 4 to be nominated by SABIC

• Proposed Chairman of the Board: Hariolf Kottmann

• Chief Executive Officer: Ernesto Occhiello

• Chief Financial Officer: Patrick Jany

• New CEO not part of the Board of Directors

• Headquarters: Switzerland

• Election of Board members and Chairman subject to shareholder approval

Extraordinary shareholders' meeting scheduled for 16 October 2018

Governance

Agreement

18 September 2018

IR Contacts

Anja Pomrehn Phone: +41 61 469 63 73

Head of Investor Relations Email: [email protected]

Maria Ivek

Investor Relations Officer

Sonja Ritschard

Junior Investor Relations Manager

Confidential, Analysts Presentation28

mailto:[email protected]

18 September 2018

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the new, stronger clariant - pressreleasefinder...18 september 2018 clariant makes step change into...

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